Feasibility Phase

c) To thoroughly evaluate the viability of a potential development.

c) Market Research and Sales Strategy

b) To assess the project's potential profitability and financial viability.

a) The Development Phase follows the Feasibility Phase only if the project is deemed viable.

d) Guaranteeing successful production and profitability.

Here is a possible outline for your Feasibility Study:

**Key Elements and Importance:**

1. **Exploration & Appraisal:**
   • Importance: To confirm the presence of hydrocarbons, estimate the size and potential production rate of the reservoir, and assess the quality and type of oil/gas.
   • Risks: Uncertainty about reservoir size, potential for poor recovery rates, inaccurate estimates of reserves.
   • Mitigation: Conduct thorough seismic surveys, use advanced drilling and logging techniques, and refine appraisal methods for greater accuracy.
2. **Reservoir Evaluation:**
   • Importance: To understand the reservoir's properties (porosity, permeability, pressure, etc.) which influences production rates and potential recovery.
   • Risks: Difficult reservoir conditions, reservoir depletion, wellbore instability.
   • Mitigation: Utilize advanced reservoir simulation models, consider enhanced oil recovery (EOR) techniques, and implement robust wellbore design practices.
3. **Technical Feasibility:**
   • Importance: To assess the viability of extracting oil and gas using available technologies and considering factors like well design, drilling techniques, and production methods.
   • Risks: Complex drilling conditions, limited access to the reservoir, production challenges due to reservoir conditions.
   • Mitigation: Invest in specialized drilling equipment, employ experienced personnel, and consider alternative production methods (e.g., horizontal drilling, fracking).
4. **Economic Evaluation:**
   • Importance: To project future production, estimate operating costs, and determine the project's profitability using financial models (NPV, IRR, payback period).
   • Risks: Fluctuations in oil prices, unexpected cost overruns, uncertainties in production estimates.
   • Mitigation: Develop robust financial models with various oil price scenarios, implement cost-control measures, and ensure reliable production estimates.
5. **Environmental Impact Assessment:**
   • Importance: To identify and assess potential environmental impacts (air, water, soil pollution, habitat disruption, etc.) and develop mitigation strategies.
   • Risks: Negative environmental impact on sensitive ecosystems, potential for spills and leaks, public concern over environmental degradation.
   • Mitigation: Develop comprehensive environmental management plans, implement pollution control technologies, and engage in stakeholder engagement and community outreach.
6. **Social Impact Assessment:**
   • Importance: To evaluate the impact of the project on local communities, considering factors like employment opportunities, infrastructure development, and potential social conflicts.
   • Risks: Community opposition, potential for social unrest, conflicts over land use, and displacement of local communities.
   • Mitigation: Develop community engagement programs, provide employment and training opportunities for local residents, invest in local infrastructure development, and ensure fair compensation for land acquisition.
7. **Regulatory Compliance:**
   • Importance: To ensure compliance with all relevant environmental, safety, and land use regulations to minimize risks and obtain necessary permits.
   • Risks: Delays in project approval, legal disputes, potential fines and penalties.
   • Mitigation: Conduct thorough legal and regulatory research, engage with relevant authorities, and maintain compliance throughout the project lifecycle.